This Euro update discusses the impact of Emmanuel Macron's Parliamentary majority on EUR exchange rates and looks at other factors that could affect Euro exchange rates this week. In the table below you’ll see high to low Euro exchange rate movement when exchanging £200,000 to Euros over the last 30 days.
|Currency Pair||% Change||Difference on £200,000|
After winning the French presidency only a few weeks ago French President Emmanuel Macron has won a Parliamentary majority and this will allow Macron to have a strong mandate in Parliament.
Macron is very much pro-EU and is looking to reform business activity in France. La Republique has only been in existence for a short period of time and it could be argued that many of the new candidates do not have any Parliamentary experience so in effect they will be learning on the job.
However, Macron is looking to push through a number of changes including cutting the number of public officials by 120,000 and cutting the budget by as much as €60 billion.
There appears to be a lot more stability in France and as one of Europe’s largest economies this news was taken well by the continent and therefore the Euro has gained marginally versus the Pound.
We have also seen European stocks hit their biggest increase in 2 months after the news that Macron will be going forward with a huge Parliamentary majority.
German Chancellor Angela Merkel has spoken out on the subject of Brexit and has stated that she would like to see a ‘good agreement’ for both Britain and the European Union. She went on to say, "I want us to reach a good agreement and this should be in the interest of both sides". As one of the most important cogs in the wheel of Brexit to have such a positive statement made about the process this could be seen as good news for both the UK and the European Union.
Meanwhile one of the other members of the Brexit discussion Guy Verhofstadt has spoken against making things easy for the UK when it comes to agreeing terms of the ‘divorce’. Rates to sell Euros to buy Pounds are currently close to their best level in 7 months so it may be worth taking advantage of this ongoing uncertainty. Even if you don’t have the full availability of funds then speak with your account manager about how a forward contract may work for you.
Thank you for reading my Euro currency report, if you have any questions about Euro exchange rates I would be more than happy to discuss them – you can contact me with any queries at firstname.lastname@example.org.
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